Indian internet stocks are expected to report a stable first quarter of fiscal 2026-27, with healthy growth and margins, despite Middle East conflict driven fuel price hike, according to Bank of America (BofA).
The brokerage, in its recent note, expects Meesho to positively surprise on growth and margins, while Delhivery may see temporary margin pressure. Eternal is also likely to post strong sequential growth and improved margins, with the brokerage maintaining a Buy rating on MakeMy Trip Eternal, Delhivery and Paytm.
Meesho and Delhivery
Meesho could positively surprise on growth and margins. The online platform is expected to report 33% growth in net merchandise value, while ad revenue will continue to improve. Meanwhile, Delhivery's margins may disappoint due to timing on fuel price pass though, likely to reverse in the second quarter of the fiscal.
Eternal And Swiggy
In terms of food delivery platforms, Eternal is estimated to report net order value growth of 17% quarter on quarter despite high competition in Quick Commerce, primarily driven led by store additions and normal seasonality. Meanwhile, Swiggy is likely to show 4% growth, with its focus to achieve margin breakeven, which is the revenue generated from commissions, delivery fees, and related charges on every order.
ALSO READ: PayU Profits, Swiggy Burns: The Split Inside Prosus' India Business
Paytm And PB Fintech
For Paytm, BoFA expects steady momentum at payments and financial services sector and estimates 5% or 8% q-o-q growth. Meanwhile, PB Fintech's business momentum remains strong, with an estimated 35% year on year premium or disbursal growth for Policybazaar and Paisabazaar, resulting into 35% overall revenue growth. However, EBITDA margin is likely to decline 360 bps on quarter on quarter basis, due to seasonality.
MakeMy Trip
Despite soft west bound and domestic air, the brokerage expects MakeMy Trip is estimated report 14% constant currency growth. Its air, hotels and bus business is likely to report 5%, 15% and 30% yoy growth respectively. The 4% overall growth led by 10% INR depreciation.
Urban Company
Urban Company's core, native and internationa business is expected to surge 21%, 65%, 65% year-on-year respectively, while its Instahelp losses will largely be flat on quarter-on-quarter basis.
ALSO READ: Meesho Turns 11: Founder Unveils Special Film Celebrating India's E-Commerce Journey
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
